You will most likely find this information very interesting. Some find it strange that the average age of death of the first five and the last five presidents was less than a year different, especially given all the advances in medicine.
STEP 9: Regression Analysis
Scenario: The owner of the Original Greek Diner has been advertising for the past year, and is now ready to renew his contract. He needs to know if the advertising has been effective, so your task is to take the prior year ' s data and perform a regression analysis to determine the correlation between advertising expenditures and restaurant sales( revenues).
Using the GreekData sheet, prepare a scatter plot graph with a title of Revenues( Y), placed to the right of the data on the same sheet. The data must be presentable, so you might want to use an increment of $ 500 for the X axis. After creating the graph, which should include the Equation and R-squared values, create a trend line. You should notice that there appears to be a close relationship between advertising spending and revenues.
Your next task is to create the regression data on a separate sheet, labeled Greek Regression. As a reminder, regression analysis is located on the Data- > Data Analysis menu. Be sure to highlight the R-squared value in red, the Intercept value in blue, and the X variable 1 in green.
Based on this data, and what you have learned about regression thus far, what do you think the owner should do?